Latest Insights in Stock Market Investing
Rolling-Up 4 Cash-Secured Put Contracts: Debunking an Option Myth
click ↑ 4 Featured It is not true that the maximum profit we can generate with a cash-secured put trade is the original put premium. Blue Collar Investors have an arsenal of exit strategies that allow us, not only to mitigate losses, but also to enhance gains. In this...
Ask Alan #244: Why Buy Back an Option for a Loss?
Alan, Using your covered call video example, the ITM premium is $8.05, but that is made up of $7.30 of intrinsic value and $0.75 of time value. So, if we buy back the option when its price falls to $1.60 (20% BTC) that $1.60 consists of all time value or upside in...
Managing Multiple Put Trades with Multiple Expirations Using the Trade Management Calculator
click ↑ 4 Featured Calculating initial returns for our covered call writing & cash-secured put trades is intuitive and straightforward. For puts, we divide the premium by the difference between the put strike and the put premium: % initial put return = [(put...
BCI PODCAST 175: Using Implied Volatility to Determine Safe Strikes for Portfolio Overwriting
Portfolio overwriting is a covered call writing-like strategy where we seek to generate additional portfolio income by selling deep OTM call options, unlikely to expire in-the-money. This podcast will analyze a strategy using implied volatility and the BCI Expected...
Shorter-Dated Options Generate the Highest Annualized Returns
click ↑ 4 Featured When selling cash-secured puts (or covered calls), large dollar premiums are enticing. Is a $17.00 premium better than an $11.00 premium? How about is a $20.00 premium better than that $17.00 premium? Before you answer "yes, of course", don't forget...
From In-The-Money (ITM) to Out-Of-The-Money (OTM) Covered Calls: Mitigating Losing Trades
click ↑ 4 Featured Selling ITM covered calls is a defensive approach to the strategy; selling OTM covered calls is a more traditional or aggressive perspective. In this article, a series of trades I executed with Wheaton Precious Metals Corp. (NYSE: WPM) are analyzed....
BCI PODCAST 174: Rolling-Up a Covered Call Trade in the Same Contract Month
Rolling up is an exit strategy available to covered call writers when share appreciation occurs. This podcast will analyze and calculate the pros & cons of rolling up a 6-month covered call trade and make suggestions regarding how to improve an already successful...
The Put-Call-Put (PCP) or Wheel Strategy: A Real-Life Example from Alan’s Portfolio
click ↑ 4 Featured The Put-Call-Put (PCP) or Wheel Strategy is a multi-tiered option-selling strategy that incorporates both selling cash-secured puts and covered call writing. In this article, a real-life example, taken from one of my option portfolios, will be...
Ask Alan #243: The Option Greeks Meet Portfolio Overwriting
Alan, For the past 6 months, I have been writing covered calls in my non-sheltered long-term buy-and-hold portfolio. I’ve been averaging an additional 8% annualized return on this portfolio and quite pleased with these results. How should I integrate the option...
Podcast
- 126. Analyzing the Status of a Rolling-Down Trade
- 124. Dividends and After-Hours News Causing Exercise of OTM Call Strikes
- 123. Implied Volatility, IV Rank and IV Percentile Defined and Practical Applications
- BCI PODCAST 122: Should I Roll-Out My Deep In-The-Money Call Option Mid-Contract?
- BCI PODCAST 121: What is a SPAC (Special Purpose Acquisition Company)?
- 120. Using the Nasdaq-100 Volatility Index (VOLQ) in Covered Call Writing Decisions
- 119. Establishing Our Cost-Basis for Long-Term Holdings
- 118. Adjusting Our Portfolio Mix to Achieve Diversification and Cash Allocation
- 117. When a Covered Call Strike Moves $1000.00 In-The-Money
- 116. How to Execute a Covered Call Trade with a Buy/Write Combination Form
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Our Journey and Mission
The Blue Collar Investor was founded with a simple mission: to empower everyday individuals with the knowledge to invest wisely in the stock market. Our blog focuses on demystifying stock options, providing readers with the tools they need to succeed. We believe that anyone can learn to invest effectively, regardless of their background or experience.
Our story began when our founder Dr. Alan Ellman, realized the lack of accessible resources for average investors. Determined to bridge this gap, we created a platform that offers comprehensive guides, expert tips, and real-world strategies. Today, The Blue Collar Investor is a trusted resource for thousands of readers seeking to enhance their financial literacy and achieve their investment goals.